Commercial insurance prices were virtually unchanged in the first three months of the year compared to the same period in 2016, according to a recent survey by broking and solutions firm Willis Towers Watson (
WTW).
It’s most recent Commercial Lines Insurance Pricing Survey (CLIPS) revealed that price changes reported by carriers averaged less than 1% for the sixth consecutive quarter.
“Despite ample capital and benign claim cost inflation trends, the commercial P&C insurance market has exercised considerable discipline as a whole over the past couple of years,” said Serhat Guven, Americas property & casualty sales practice leader, Willis Towers Watson.
Results were based on new and renewal business figures obtained directly from carriers underwriting the business. Data was contributed by 39 participating insurers representing approximately 20% of the US commercial insurance market (excluding state workers’ compensation funds).
According to the survey, price changes in the first quarter for most lines of business were “fairly consistent” with changes reported in the fourth quarter. Workers’ compensation, commercial property, directors and officers, and surety indicated “modest” price decreases, while commercial auto saw “meaningful” price increases.
“Insurers have held the line on trading profitability for volume, while still responding as needed to emerging trends, e.g., commercial auto on the high end and workers’ compensation on the low end,” added Guven.
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